Disney to increase stake in UTV to 51.6% at Rs 805 cr

Published: Monday, February 18, 2008, 12:34 [IST]

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New Delhi, Feb 18 (UNI) UTV Software Communications Ltd (USCL) today said its board has approved the issuance of 93,52,500 equity shares on preferential basis to Disney at a price of Rs 860.79 per equity share, amounting to about Rs 805 crore.

Disney presently holds 34,00,000 equity shares, representing 14.85 per cent of the equity share capital of USCL and after the issue, Disney will hold 51.6 per cent stake, a statement said.

The board also approved the issuance on preferential basis of 45,32,000 warrants convertible into 45,32,000 equity shares to Unilazer Exports and Management Consultants Ltd at a price of Rs 860.79 per warrant.

The total investment by Unilazer in the company would be about Rs 390 crores.

The company will issue shares against the warrants, subject to receipt of the FIPB Approval.

Unilazer Exports, along with its promoters, presently holds 30.67 per cent of the equity share capital in USCL, through 70,21,140 equity shares and 19,49,360 warrants convertible into equity shares.

The statement said the new agreements permit Unilazer and Disney to appoint three directors each on the 12 member board of directors of the company.

Furthermore, Mr Rohinton Screwvala will be the chairman and the Managing Director of the Company for two successive terms of five years each.

The board also approved its debt funding in UTV Global Broadcasting Ltd (UGBL) together with further investment of Rs 240 crore for a 75 per cent stake.

Simultaneously, Disney will also invest in UGBL for a 15 per cent equity shareholding and 720,000 warrants for a sum of Rs 118.98 crore.

UGBL is the parent company for its two wholly-owned subsidiaries, Genx Entertainment Ltd and UTV Entertainment Television Ltd.